Calculate the net present value of the contract

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Reference no: EM133341038

Question: A contract is estimated to yield net annual returns of $31,000 for seven years. To secure the contract, an immediate outlay of $150,000 is required. Interest is 11% compounded annually. Calculate the net present value (NPV) of the contract and determine whether the project should be accepted or rejected according to the net present value criterion. The net present value of the project is S. (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.) Should the project be accepted or rejected?

Reference no: EM133341038

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